Exam 6: Entrepreneurship and Starting a Small Business

Entrepreneurs are motivated by the desire to earn a profit.

Many more new entrepreneurs are turning to crowdfunding sites, like Kickstarter, to raise funds for their endeavors.

Hoping to qualify for a Small Business Administration microloan, Aliana's business plan clearly pinpoints her strategy to gainfully serve her target market. Unfortunately, her lack of business experience and limited collateral greatly reduce her chances of obtaining the microloan.

With fewer employees and less revenue, small businesses have less need for detailed records than do larger business organizations.

Entrepreneurs are well advised to avoid starting businesses in the same market in which they were previously employed.

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

In order to improve his chances of small business success, DeMarcus worked hard to prepare his business plan. Most often, a positive outcome of this exercise is

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

In order to better serve their customers, small business owners should avoid delegating authority to their employees.

Which of the following best describes the outlook for small businesses in international markets?

The Spotlight on Small Business box "Student Startups" features students who

Effective entrepreneurial teams combine

One way to control the legal costs associated with operating a small business is to purchase a prepaid legal plan.

Venture capitalists provide funds for start-up businesses in exchange for part ownership in the new firm.

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

Which of the following explains why individuals accept the risks of business ownership?

You can negotiate a win-win situation by offering to manage an established small business. You win from the experience; the owner wins with free time.

Ariel wants to start and run her own business. Although she acknowledges it would be helpful to earn a healthy profit, her main motivation is the exhilaration and challenge of starting and running a business. Ariel's attitude is different from most small business owners, who usually focus solely on the earnings potential of their ventures, as well as the opportunity to acquire power and prestige.

Attracting qualified workers presents a problem for small businesses since they usually offer less money, fewer benefits, and less room for advancement than larger firms offer.

If you go through the exercise of preparing a business plan, only to determine that you need twice the amount of money to start the business than you have, the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market, you can use the revenues you accrue to make up the shortfall.